Do you ever talk to your buyer's about taking title and what their options are? If not, why not? If so, why, and how?

I have seen multiple buyers, especially first time, (or first time in a state) go to a closing and take the title as it is prepared, the attorney or other closing entity not asking one question about how the buyers would like to take title. For instance, here, in Georgia, multiple buyers, including married couples, can take title to a property either as Joint Tenants or Tenants in Common. And most don't really understand the difference or the implications. In other states, there may be different title options, or restrictions.

When my parents bought property in Arizona they purchased as joint tenants. When my father died, my mother thought that she had received the rights to the property. I purchased the property from my mother, or, at least I thought that I did. Come to find out, I only purchased 1/2 of the property, her half. However, I did not find this out until I sold the property, 15 year after my mother died. Nobody told my parents that they need to add "with Rights of Survivorship" in order for my mother to get my father's half. It took some money, and some time, but we were able to get things corrected.

But back to my question, do you ever talk to your buyer's about title? I know that I do, although I only point out the options here in Georgia and do not advise them as to what would be best in their circumstances. I recommend that if they want legal advice as to how they should take title, to talk to an attorney.

Like I said, it might not be a catchy title, but, how a title is taken can catch the buyers unaware when it is time to sell.

 

 
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5 Comments on This Might Not Be a Catchy Title, But, Do We Need to Talk About Title?

NOV
09

As you stated at the end, it is best to get "how to take title" advise from an attorney.  Our title companies provide many brochures on the different forms of title and we give these to our clients when we open escrow.

10:51am • #1
200,524 Points 19 Featured Posts Outside Blog

Mike,

"I recommend that if they want legal advice as to how they should take title, to talk to an attorney."  That's a very good cop-out! That's also the best and most common PC answer! It's also why we should never refer to ourselves useing the words "fiduciary" or "professional"!!!!!!!!!!!!!!!

How you take title is as important as how you finance a property! Words do have meanings, and yes the can vary between states.

If you have to add "with Rights of Survivorship"  to "joint tenancy" how you'd define "tenants in common" because the "Rights of Survivorship" is normally the differences between them.  Many years ago I was teaching a class or title in RENO when I mentioned "tenants by entity" the room when silent. Tenant's by entities is simply a joint tenancy between a married couple, the consensus was it wasn't legal in Nevada. I got the last laugh, alone with a title attorney, I was correct, but it's almost never used in the West,. Oops!

I want people to talk to their Attorney and more often their account, but to me it wourld be crimanal to simply brush off the question because we know only 1 in a 100 will do so.

Bill

2:27pm • #2
332,893 Points 4 Featured Posts Outside Blog

Laxson - glad to hear that someone is, and hopefully you are pointing out the options (but not giving legal advice)

Bill - it is not a cop-out, it is a disclaimer. By law, I am not allowed to give legal advice. However, I feel I should make the buyers aware that they may have options and that I would not be exercising my responsibilities under agency by remaining mute about it. It is also not being PC, but, rather the legally correct thing to say, and, to maintain CMA (cover my ass) I need to say it.

On the question of "rights of survivorship" I also questioned that when I found out about it. There was some convoluted attempt to explain the difference but, it didn't really work.

I am aware of tenants by entirety but that is not used or recognized here in Georgia.

3:56pm • #3
NOV
10
228,874 Points 2 Featured Posts

Mike,

This is something that is not explained very well.  Thank you for the post.

Ann Hayden in cloudy Wildwood, MO

12:18pm • #4
NOV
11
332,893 Points 4 Featured Posts Outside Blog

Ann - I think too many agents are remiss about this matter

6:33am • #5

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Mike Saunders

Athens, GA

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Keller Williams Realty - Greater Athens

Address: 1361 Jennings Mill Rd, S-101, Bogart, GA, 30622

Office Phone: (706) 316-2900 x 3517

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